By Marcus Leach

As was widely expected the European Central Bank (ECB) has raised interest rates from 1.25% to 1.5% as they look to cool inflation in the eurozone.

Following ECB president Jean-Claude Trichet's hint last month that a rise was imminent it was not an unexpected move for the 17-nation eurozone.

However, there were those who thought it may remain the same given debt problems faced by smaller eurozone nations. But the ECB felt a possible over-heating of economies in countries such as Germany was enough to prompt the rise.

The main role of the ECB is to ensure inflation is kept low, although the rise has triggered fears that the cost of borrowing will now increase, which is not good news for Greece and Portugal.

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